Despite economic headwinds being faced by the country, such as peso volatility and ever-fluctuating inflation, the Sy Family-led SM Group said they remain optimistic for the coming year but with caution.
In a statement, SM Investments president and chief executive officer Frederic DyBuncio said that the business sector has adapted well despite the said ongoing challenges.
Consistent demand sustained household spending in the third quarter, with Household Final Consumption Expenditure posting a year-on-year growth of 5.1 percent, maintaining the same level in the same quarter last year, data from the Philippine Statistics Authority showed.
“Any moderation in inflation should trigger a strong confidence rebound. This could create opportunities in consumer-focused sectors in the country and we are poised to cater to these evolving demands,” DyBuncio said.
Last month, SM Investments disclosed a consolidated net income of P60.9 billion for the first nine months of 2024, a 9 percent increase from P55.9 billion in the same period last year.
Continuous expansion
To cater to growing demand, DyBuncio said SM continues to expand into more underserved areas, contributing to sustainable economic development and collaborating with government stakeholders to enhance access to modern retail, financial services, and integrated property developments.
“By investing and expanding to more areas nationwide, SM creates new markets and improves access to these essential sectors, serving more communities and helping stimulate sustained economic activities,” he said.
In an earlier interview, SM Prime Holdings, Inc. (SM Prime) top official Hans Sy disclosed that they are slowing down the opening of more branches in China, but are on track to open more regional branches, completing their 100 malls by 2027.
Promising ventures
Meanwhile, DyBuncio said SM continues to invest in promising ventures, such as renewable energy and logistics, that foster economic activity.
SM has invested in the clean energy industry through the Philippine Geothermal Production Company which produces 300 Megawatts of geothermal steam supply.
On the other hand, he said SM aims to continue to develop geothermal concessions through PGPC in support of the Department of Energy’s goal of reaching 50 percent renewable energy supply by 2040.
To encourage circularity towards green energy production, SM’s property arm, SM Prime Holdings partnered with GUUN Co. Ltd. (GUNN) to implement the Japanese technique of reducing landfill impact.
The technology converts non-recyclable and hard-to-recycle packaging into alternative fuel.
To attain this, SM’s banking arm, BDO Unibank, is one of the largest funders of renewable energy projects, funding P898 billion in sustainable finance, including loans to 59 renewable energy projects as of December 2023.
In logistics and tourism, the improvement of transport networks across the country’s archipelago connects tourist and industrial areas that will help create inclusive growth.
SM, through its subsidiary 2GO, launched MV Masigla and MV Masikap in 2024 to help better connect goods to 19 ports across the country including Iloilo, Bacolod, Cagayan de Oro, and Manila, further supporting the government’s push for medium-term growth through an upgraded tourism infrastructure and ecosystem.
“Our focus for 2025 will be to drive purposeful growth, empowering communities and partners through our investments towards a sustainable future,” DyBuncio concluded.